Please explain how to solve the following problems.

Use the following scenario and data:

Scenario – FlyHigh airlines is test marketing their boxed snacks sold on their short flights. FlyHigh selected 15 different markets for a quarter-long sales test. For the entire quarter, the boxed snack was sold onboard at 4 different prices starting at $8.50 a box. Data was collected on the average income of the passenger aboard the flights. Data was also collected that represented a snack purchased off-board (presumably in the airport) and carried on by the passenger. The amount of passengers that this boxed snack was available to and the ultimate quantity sold was also collected.

Attachment: Forecast Data below

Answer the following in your Forecast and Recommendation:

What is your selected linear demand function given the variables presented? (hint: Qd = x + y + z + q….)

What is the estimated linear demand function (Q = ….)?

What percentage of the variation in sales (Q) is explained by the demand function?

What if the price of the boxed lunch sold on board was increased by $2?

If a typical market sold a boxed snack at $8.75, their average income was $80,378, the off-board priced snack was $7.50, and the population was 6,378, what is the expected sales?

Given this information, as a manager, make a recommendation to FlyHigh airlines on the price of their boxed snacks.

91, 5 : .91 f" f i! average…i.nsome°fPassenser …. .. 2.. ,._.,,.,,….M…._.4..5_.M.WMT-.._.W._4… .4-.- "2—.-. «#8,. ,2 Price of price of snack snack (presumably amount of . ‘flight sold on average income carried by passengers iiquantity :1 , market airplane of passenger Ipassenger) _ available sold 7’ 2 3 1 8.5 75586 ~ 8.75 4] 2 8.5 – 67521 8.5 1 5__ 3 8.5 71333 . ‘ 1 7.64’ V _ 5.5 4 8.75 77352 , 7.35 .1. 17_ 5 8.75 41450 . 7.75 – 1a: 6 8.75 57655 8.15 7 _9‘ 7 9 60265. . 8.55 -1O 8 9 69542 8 1, ﬁ11— 9 9 71596 7.75 12 10 9.25 72657 7.45 A 1.15 11 9.25 66421 7.89 14; 12 9.25 77624 _‘ 7.49 A 15 ‘ 18 9.5 80110 . 81-15-“, 1‘31.-.18; 14 9.5 87421 f . 78 ,_17 15 9.5 88450 .. 79 . __ . 18 3 19 a , 20, , 21 ,_

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